Governing Laws

TRS is a governmental, defined-benefit pension plan that is required by Montana statute to be tax-qualified under Section 401(a) of the United States Internal Revenue Code (“IRC”).

As such, TRS is required to comply with all applicable tax-qualification standards as set forth in the IRC (Title 26 of United States Code) and the corresponding federal regulations, and as construed through various pronouncements and guidance issued by the Internal Revenue Service (“IRS”).

Use this link to access Section 401(a) of the IRC:

https://uscode.house.gov/view.xhtml?req=(title:26%20section:401)

Title 19, Chapter 20, of the Montana Code Annotated (“MCA”) contains the primary statutes governing the administration and operation of TRS. The statutes were enacted and are amended, as necessary, through the legislative process. 

Title 2, Chapter 44 of the Administrative Rules of Montana (“ARM”) contains the agency-developed rules (regulations) necessary to ensure administration of TRS consistent with its statutes. The ARMs are recommended by TRS staff, approved by the TRS Board, and adopted in conformity with the process mandated by the Montana Administrative Procedures Act (“MAPA”).

Note: In accordance with MAPA, each state administrative agency must maintain a list of persons who wish to be notified of any proposed changes to the agency's Administrative Rules. If you wish to be placed on TRS's list of interested persons, submit your request to: TrsOutreach@mt.gov.

Article VIII, Section 15 of the Montana Constitution provides that TRS Board members must administer the retirement system, including actuarial determinations, as fiduciaries of system participants and their beneficiaries. The same section also requires the retirement system be funded on an actuarially sound basis and that system assets be held in trust and spent only to pay participant benefits and administrative expenses of the retirement system.

Links:

Montana Constitution, Article VIII, Section 15

https://archive.legmt.gov/bills/mca/title_0000/article_0080/part_0010/section_0150/0000-0080-0010-0150.html

Title 19, Chapter 20, MCA

https://archive.legmt.gov/bills/mca/title_0190/chapter_0200/parts_index.html

Title 2, Chapter 44, ARM

https://rules.mt.gov/browse/collections/aec52c46-128e-4279-9068-8af5d5432d74/sections/a242ccab-06e1-4685-8801-b319281ef936

Together, the constitutional and statutory provisions and administrative rules constitute TRS's “plan terms.” The IRS requires that a qualified plan must have written plan terms and the plan must be administered in conformity with those terms.